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With a 5.4% increase in real GDP in 2023, Kenya's GDP is projected to reach $116.32 billion by end of 2024. Following two years of drought, the agricultural sector recovered well, improving crop yields and livestock health.
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With a 5.4% increase in real GDP in 2023, Kenya's GDP is projected to reach $116.32 billion by end of 2024. Following two years of drought, the agricultural sector recovered well, improving crop yields and livestock health. The pace at which prices rise over time is known as inflation, and it is a wide indicator. Global commerce, agriculture, energy, industry, construction, tourism, and transportation are all highlighted in the Monthly Leading Economic Indicators report, along with changes in inflation, interest rates, currency rates, and consumer price indices. The fiscal deficit is projected to decrease to 5.9% of GDP by 2024 and 5.0% in 2025, while the current account deficit is expected to decrease to 4.6%.
Kenya's unemployment rate fluctuated, rising from 5.7% in late 2023 to 5.44% in 2024 due to economic challenges.
An explanation note on the proposed changes to the Tax Laws (Amendment) Bill 2024 and the Business Laws (Amendment) Bill 2024 has been released by the Cabinet Secretary, National Treasury and Economic Planning. The Tax Laws Amendment Bill aims to reintroduce provisions from the Finance Bill 2024 and introduce new ones such as SHIF and the housing levy, while the Business Laws Amendment Bill addresses issues affecting Kenya's manufacturing, investments, and exports. The proposed changes aim to increase tax-free meals, non-taxable benefits, and tax-exempt pension contributions, reducing PAYE payable and increasing net pay.
Economic insights in Kenya involve understanding the country's current economic conditions, performance indicators, and policy developments. This encompasses analyzing key macroeconomic trends, which include economic growth, inflation, exchange rates, fiscal policies, employment, and trade dynamics.
Understanding these macroeconomic dynamics is essential for policymakers, investors, and development partners aiming to unlock Kenya's full potential while addressing the challenges of inequality, climate change, and fiscal sustainability.
A comprehensive grasp of societal shifts is fostered by keeping up with current government policies, which also better prepares people and organizations to navigate and make contributions to society.
Kenya, a major economic center in East Africa, has experienced a steady growth rate of 4-6% annually over the past decade. The country's economy is primarily based on agriculture, which accounts for 20-25% of the GDP. Tourism, fueled by its beaches and wildlife, is a significant source of foreign cash. Manufacturing faces challenges due to high costs, foreign competition, and erratic regulations. Kenya is also leading Africa in technology innovation, particularly in mobile money services. The country has made significant investments in infrastructure, including energy projects and the Standard Gauge Railway. It also participates in the African Continental Free Trade Area and the East African Community, with top trading partners including the US, China, India, and the European Union. However, Kenya faces challenges such as public debt, rising costs of living, high unemployment, and corruption.
Kenya's government policies are transforming the industry with two common introductions: a housing levy of 1.5% for employees and employers, and the Affordable Housing Levy of 1.5% for all income, and a 2.75% Social Health Insurance Fund rate for employees.
Innovation in environmentally friendly packaging and recycling infrastructure has been made possible by the introduction of an eco-levy.
Global warming's weather variability affects agriculture, affecting GDP. Focusing on service and manufacturing industries like first world countries can boost GDP.
The manufacturing industry, which accounts for 8% of the GDP, is impacted by recent government policies, which if properly implemented, could potentially reduce unemployment.
Overview. (n.d.). World Bank. https://www.worldbank.org/en/country/kenya/overview#:~:text=Kenya's%20real
%20GDP%20expanded%20at,downward%20trajectory%20for%20poverty%20 rates
Unemployment rate in Africa by country 2024 | Statista. (2023, November 14). Statista. https://www.statista.com/statistics/1286939/unemployment-rate-in-africa-by- country/
AFRICAN ECONOMIC OUTLOOK 2024: Driving Africa’s Transformation The Reform of the Global Financial Architecture. (2024). In https://www.afdb.org/sites/default/files/2024/06/06/aeo_2024_-_country_notes.pdf. Africa Development Bank Group. https://www.afdb.org/sites/default/files/2024/06/06/aeo_2024_-_country_notes.pdf
Quarterly Gross Domestic Product report. (n.d.). https://www.knbs.or.ke/wp- content/uploads/2024/10/Kenya-Quarterly-Gross-Domestic-Product-Second- Quarter-2024.pdf. https://www.knbs.or.ke/wp-content/uploads/2024/10/Kenya- Quarterly-Gross-Domestic-Product-Second-Quarter-2024.pdf
LEADING ECONOMIC INDICATORS. (n.d.). In https://www.knbs.or.ke/wp- content/uploads/2024/11/Leading-Economic-Indicators-September-2024_1.pdf. https://www.knbs.or.ke/wp-content/uploads/2024/11/Leading-Economic- Indicators-September-2024_1.pdf
World Bank projects Kenya’s unemployment to worsen in 2024. (2024, October 19). World Bank projects Kenya’s unemployment to worsen in 2024.
https://www.businessdailyafrica.com/bd/economy/world-bank-projects-kenya-s- unemployment-to-worsen-in-2024-4797770
Kenya: The Government proposes the enactment of the Tax Laws (Amendment) Bill, 2024 and the Business Laws (Amendment) Bill, 2024. (2024, November 5). BOWMANS. https://bowmanslaw.com/insights/kenya-the-government-proposes-the-enactment- of-the-tax-laws-amendment-bill-2024-and-the-business-laws-amendment-bill- 2024/
Kenya’s 2025 real estate market is shaped by rapid urbanization, infrastructure growth and a 2M-unit housing deficit. Key trends include green homes, smart buildings, e-commerce-driven logistics, satellite town growth and mixed-use projects. Opportunities lie in affordable housing, land and hospitality, though risks include oversupply, financing hurdles and economic volatility.
Kenya launched the FY 2026/27 and Medium-Term Budget process on Aug 25, 2025, at KICC. It aligns fiscal planning with the Bottom-Up Economic Transformation Agenda and MTP IV, ensuring transparency, public participation and efficient resource allocation for growth, jobs and inclusive development amid global uncertainties.
Kenya’s dollar millionaires fell from 7,200 in 2024 to 6,800 in 2025 due to economic uncertainty, currency depreciation, political unrest, high taxes and capital flight. Wealthy individuals diversified assets abroad, while protests and governance issues worsened investor confidence. Reforms and incentives are needed to stabilize and grow wealth.
